Skip to main content

Hilco and Lakeland management close in on deal for family-owned retailer 

The prolific high street investor Hilco Capital is closing in on a deal to fund a buyout of Lakeland, the family-owned homewares retailer. Sky News has learnt that Hilco, which has backed retailers including HMV and Superdry, and Lakeland's management are in advanced talks with its shareholders about a deal to take control of the 61 year-old business.

A deal could be formally agreed in the coming days, according to insiders.

If confirmed, a sale of Lakeland would follow months of talks with a number of potential buyers, including Modella Capital, the firm which recently agreed to buy WH Smith's high street chain.

Lakeland is controlled by the three sons of founder Alan Rayner, and has been seeking tens of millions of pounds of new funding as it faces headwinds including the national insurance hike which came into effect this month.

Established in 1964 as Lakeland Plastics, the company employs roughly 1,000 people across a chain of nearly 60 stores, at its head office in Windermere and its distribution centres. Sky News revealed in January that the company had hired Teneo as financial advisers to help it explore options. PricewaterhouseCoopers, the accountancy firm, has been advising HSBC, Lakeland's principal lender, which is expected to end its involvement with the company. The increase in employers' national insurance has provoked protest from retailers and hospitality businesses, with industry bodies warning that the changes represented a tipping point for many employers. A Lakeland spokesperson said in January that it was "considering a number of options to ensure a sustainable and long-term capital structure, which builds on our sixty-year heritage as one of the UK's most innovative homeware retailers". Lakeland was founded when Mr Rayner began selling plastic bags for home freezing from his family garage in the Lake District. It now sells more than 4,000 home and kitchen products. Accounts filed at Companies House for 2023 warned that it entered that year "facing the most challenging economic conditions for several decades with high inflation leading to falls in demand for many traditional categories". Sales during the year were broadly flat at £153m, with Lakeland's auditors warning of a "material uncertainty…[about] the company's ability to continue as a going concern". The accounts added that it completed the renewal of its banking facilities with HSBC after the year-end, comprising a £7.5m revolving credit facility expiring in May 2028 and £10m trade finance facility.

A spokesman for Hilco declined to comment on Friday, while Lakeland has been contacted for comment.

https://worldnewsguru.us/?p=27520&network_id=
Labels:

Comments

Post a Comment

Popular posts from this blog

Dollar set for best week since November on US rates, economic outlook

By Rae Wee SINGAPORE () -The dollar was on track for its best weekly performance in over a month on Friday, underpinned by expectations of fewer Federal Reserve rate cuts this year and the view that the U.S. economy will continue to outperform the rest of its peers globally. The greenback began the new year on a strong note reaching a more than two-year high of 109.54 against a basket of currencies on Thursday as it extended a stellar rally from last year. Its charge higher has come on the back of a more hawkish Fed and a resilient U.S. economy. "Looks like dollar strength is here to stay for now in early 2025 given the U.S. exceptionalism story is here to stay, and it still comes with high U.S. yields," said Charu Chanana, chief investment strategist at Saxo. "Add to that the uncertainty from policies of the incoming (Donald) Trump administration, and you also get the safety aspect of the dollar looking attractive." Ahead of U.S. President-elect Trump'...
Post a Comment
Read more

Stocks and dollar end 2024 steady, 2025 all about Trump

By Ankur Banerjee and Alun John SINGAPORE/LONDON () -World stocks held steady on Tuesday in cautious year-end trading that has seen investors bracing for the incoming Donald Trump administration by scaling back bets on deep U.S. interest rate cuts in 2025, helping the dollar stand tall against most other currencies. Volumes were light with a holiday for the New Year looming, with the Santa-rally largely failing to materialise as elevated Treasury yields weigh on high equity valuations and boost the greenback. MSCI's world share index was flat on the day, but set to wrap up 2025 with a 16% annual gain. This year's rally has been largely a U.S. phenomenon, with the having risen around 24% compared with an 8% gain for MSCI's broadest index of Asia-Pacific shares outside Japan, and just 5% for Europe's . () But the mood latterly has been more cautious on the back of higher U.S. Treasury yields. The yield on the 10-year note reached 4.64% late last week, its highest...
Post a Comment
Read more

US Senate planning Jan. 16 hearing for Trump Treasury pick Bessent, Politico reports

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Fusion Media  would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ...
Post a Comment
Read more